Study for Rural Communications in Mozambique VF

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Study for Rural Communications in Mozambique VF REPUBLIC OF MOZAMBIQUE MINISTRYOF TRANSPORTS AND COMMUNICATIONS MOZAMBIQUE’S COMMUNICATIONS NATIONAL INSTITUTE Consulting Services for Technical Assistance on Study for Rural Communications Viability in Mozambique FINAL REPORT Written by: Luís Rego and Hermínia Fernandes-Samuel MAPUTO, OCTOBER 2017 Final Report, October 2017 Table of Contents List of Abbreviations and Acronyms .......................................................................................... 3 1. Executive Summary ........................................................................................................... 5 2. Methodology .................................................................................................................... 8 3. Political and Economic Environment ................................................................................ 10 3.1. Political Environment ............................................................................................... 10 3.2. Economic Environment ............................................................................................ 11 3.3. Demographics.......................................................................................................... 13 3.4. Government Programs and Projects ........................................................................ 14 3.4.1. Five-YearGovernmentProgram 2015-2019 ....................................................... 14 3.4.2. GovernmentProjects in ICTs ............................................................................. 15 3.4.3. Electronic Government Network (GovNet) ....................................................... 15 3.4.4. Government Portal .......................................................................................... 17 3.4.5. System of Financial Administration of the State (e-SISTAFE) ............................. 17 3.4.6. Programs of Community Multimedia Centers (CMCs) ....................................... 17 3.4.7. Internet in Schools ........................................................................................... 17 3.4.8. Electronic Currency Platform............................................................................ 18 3.4.9. Project of National Network of Higher Education and Research (MoRENet) ..... 18 4. Doing Business in Mozambique ....................................................................................... 19 4.1. Investment Guarantee and Tax Incentives ....................................................... …….20 4.1.1. Registration Process ......................................................................................... 20 4.2. Paying Taxes ............................................................................................................ 21 4.2.1 Types of Taxes …………………………………………………………………………………………………22 4.3. Guarantees to Investment ....................................................................................... 23 4.3.1. Investment Guarantees .................................................................................... 23 4.3.2. Investment Incentives ...................................................................................... 24 4.3.3. National and Foreign Direct Investment ........................................................... 25 4.4. Access to Land ......................................................................................................... 25 4.5. Enforcing Contracts ................................................................................................. 25 5. Telecommunication Sector Analysis ................................................................................ 27 5.1. Policy and Regulatory Framework ............................................................................ 27 5.1.1. Telecommunications Market Regulator ............................................................ 27 5.1.2. Licensing .......................................................................................................... 28 Study on Rural Communications Viability in Mozambique Page 0 Final Report, October 2017 5.1.3. Network sharing .............................................................................................. 28 5.1.4. Interconnectivity .............................................................................................. 30 5.1.5. Fair Competition .............................................................................................. 30 5.1.6. Quality of Service ............................................................................................. 31 5.1.7. Spectrum Management ................................................................................... 31 5.1.8. Telecommunications Taxes and Fees ................................................................ 32 5.1.9. Spectrum Charges ............................................................................................ 32 5.1.10. Universal Service Access Fund (USAF) .............................................................. 32 5.1.11. Consumer protection ....................................................................................... 34 5.1.12. Remove Market Barriers .................................................................................. 35 6. Market Structure ............................................................................................................. 36 6.1. Voice Market ........................................................................................................... 36 6.1.1. Fixed Market .................................................................................................... 36 6.1.2. Mobile Market ................................................................................................. 37 6.2. Broadband and Internet Market .............................................................................. 39 6.2.1. Fixed Market .................................................................................................... 39 6.2.2. Mobile Market ................................................................................................. 40 6.3. Market Revenue and Investment ............................................................................. 40 6.3.1. Revenue of Mobile Market............................................................................... 40 6.3.2. Revenue of Fixed Market ................................................................................. 40 6.3.3. Investment of Mobile Market .......................................................................... 41 6.3.4. Investment of Fixed Market ............................................................................. 41 6.4. Market Players ........................................................................................................ 42 6.5. Backbone Infrastructure .......................................................................................... 43 6.6. International Connectivity ....................................................................................... 45 6.7. Middle-Mile (Backhaul) Infrastructure ..................................................................... 47 6.8. Access Networks ...................................................................................................... 47 6.9. International Services .............................................................................................. 47 7. Merging State-Owned Operating Companies ................................................................... 48 8. Reforming the Market ..................................................................................................... 49 9. Business Opportunity ...................................................................................................... 49 9.1. Rural Area................................................................................................................ 49 9.2. Urban Area .............................................................................................................. 50 Study on Rural Communications Viability in Mozambique Page 1 Final Report, October 2017 9.3. Potential Financing and Funding Partners for Rural Telecommunications Infrastructure ...................................................................................................................... 50 10. Barriers to Investment..................................................................................................... 51 11. Conclusion and Recommendation ................................................................................... 53 11.1. Conclusion ........................................................................................................... 53 11.2. Recommendation ................................................................................................ 53 12. References ...................................................................................................................... 54 13. Annexures ....................................................................................................................... 56 13.1. Annexure I: Bureaucratic and Legal Steps to Incorporate and Register a New Firm .......... 56 13.2. Annexure II: Labour Regulation ............................................................................ 59 13.3. Annexure III: Licensing and Numbering Fees ....................................................... 60 13.4. Annexure IV: Spectrum Charges and Fee Formula ...............................................
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